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Courier firms raise shipping rates in Germany. What is driving the changes in prices?

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German courier companies Hermes and DPD are planning price increases for home deliveries. For a change, DHL, which pays the highest wages to its employees, maintains the prices of their services at a similar level.

The second largest player on the German courier services market – Hermes – informed about the plans to invest in employees less than a month ago. The company announced then that in the next five years, it would spend 100 million euros on staff costs and salaries.

Thanks to that, in a few years employees of the company’s partners who perform as much as 95 percent of deliveries in Germany, will earn at least 12 euros per hour. Next year, this rate is expected to reach more than 10 euros after the hike, although in some larger cities (eg in Munich) the wage is already above this level.

Hermes already raised service prices in March this year, but it was not the last word of the company. The German giant has just announced increases in home delivery prices by 50 cents per package.

The increase in courier services prices has also been announced by DPD. After a 4.5 percent increase this year, at the turn of 2018 and 2019, there will be another – 6.5 percent increase. The reason for this decision is primarily higher transport costs and a shortage of staff in the industry.

For a change, the subsidiary of German Post, DHL maintains prices at an unchanged level.

Photo: dpdhl.com

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